Professional Documents
Culture Documents
Unit 8
Unit 8
Structure
8.1 Introduction
8.2 Objectives
8.7 Summing Up
8.8 Glossary
8.10 References
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8.1 INTRODUCTION
We are living in an era characterized by some as marked by the decline or retreat of the state.
The decline of the state is accompanied by an increasing attention towards civil society
institutions. Among the social groups and associations of various kinds that are considered to
prominent in the last two decades. In the years after Independence, people exhorted the state
to take the initiative with respect to social transformation; now the expectation is that NGOs
will perform the same role. Be it the field of education or health, providing drinking water,
organizing forest-management groups or thrift societies for working women, NGOs are
supposed to take the lead. How has such a dramatic shift occurred? How have NGOs become
such an important part of civil society? In this Unit we will discuss all these aspects.
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8.2 OBJECTIVES
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8.3 THE RISE OF NGOS
The rise of NGOs is one of the central processes in the sphere of development since the
1980s. This period also coincides with the demise of developmentalism as a project of the
nation-state and the rise of post-developmentalist neo-liberal political economy (or what has
also been described as market triumphalism). In what is often characterized as a move from
inefficient states to efficient markets, NGOs hold a distinctive mediating position. Given the
critically examine the changing relations among NGOs, state agencies, multilateral and
bilateral funding institutions and other social groups. This situation has great bearing on the
way in which we conceive of the process of social change and the roles of different social
actors within it. Students of the sociology of organizations, political sociology, sociology of
social movements and sociology of development need to pay greater attention to the
phenomenon of NGOs.
By and large, sociologists have not given the phenomenal growth of NGOs the critical
attention that it requires. There are hardly any systematic studies of their membership: what is
the socio-economic background of the activists associated with them? Similarly, there are no
attempts to analyse the NGOs as organizations: what are the dynamics and the process of
decision-making within them? We know almost nothing about the power relationships within
these groups and associations, nor do we known about the forms and channels of
participation that affect the power relationship (Fisher 1997: 456). The literature on NGOs
mainly consists of broad descriptive histories and, sometimes, generalized accounts of their
One of the reasons for the absence of rigorous studies is perhaps the close collaboration
between academics and the NGOs’ practical work. Often, social scientists have close links
with NGOs, and since many NGOs operate in the cross-disciplinary space between academic
research and activist intervention (policy study and advocacy, training and capacity building,
social work and service delivery, etc.), they offer to academics many opportunities to pursue
their work in the domain of non-academics practice. This collaboration has prevented many
scholars from subjecting NGOs to the same scrutiny as other social institutions.
Although NGOs claim to believe in openness and transparency, many of them are not open to
scrutiny by outsiders. Those who have achieved a degree of success and fame are often
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8.4 NGO SECTOR IN INDIA
Ignoring this diversity, unfounded generalizations are often put forward and unfair comments
and criticisms are offered. NGOs differ from one another in size, funding and functions; in
the levels at which they operate; and in organizational structures, goals and membership
(Fisher 1997: 447). There are over 14,000 NGOs registered under the Foreign Contributions
There are many definitions of NGOs. The voluntary sector includes non-governmental, non-
against environmental degradation and many other similar tasks. Some activists resent and
reject the term NGO and instead designate themselves as social action groups, political action
groups or social movements (see Kothari 1993). Anna Hazare’s village development group at
(SEWA) in Gujarat are both identified as NGOs, but are very different from each other in
terms of size, membership, funding, approaches, strategies and outcomes. These differences
only show that one should be very careful while making generalized statements about NGOs.
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8.5 CLASSIFICATION OF NGOS
Just as there are many definitions of NGOs, there are several classifications too. Ghanshyam
Shah and H.R. Chaturvedi (1983) divide NGOs into three main categories: techno-
managerial, reformist and radical. Indira Hirway (1995) classifies NGOs in Gujarat into
NGOs. Sudarshan Iyengar (1998) classifies NGOs in Gujarat into four categories: Gandhian,
D.C. Korten (1990: 115-27) distinguishes three generations of NGOs: the first, committed to
relief and welfare; a second, attending to small-scale, local development projects; and a third,
outlined a similar typology of NGOs based on distinctions among charity, development and
empowerment work.
In Korten’s (1990) view, the firs generation relief and welfare NGOs, which predominate in
the developing world, often have close tie with state an international development aid
development NGOs organize individuals locally to address issues like public health and
structural constraints, to challenge local and regional elites and to assist in reducing
dependency relationships. The third generation NGOs explicitly target political constraints,
communications and linkages among people’s organizations. These networks help to spread
awareness of the practical local successes of some second generation development strategies
and to serve as catalysts for wider social movements. However, these types are more ideal
successfully organizing themselves. The SEWA at Ahmedabad is one such example. Bhatt
(1998:146-61) has described the activities of The SEWA Bank, one of several organizations
working under the SEWA umbrella. The SEWA Bank has organized thousands of poor
working women and mobilized them to run a co-operative bank, which encourages savings
and fulfils their credit requirements for consumption, trading and production purposes. Its
annual turnover runs into crores of rupees. George Mathew (1999: 529-34) has pointed out
several instances in which panchayats and NGOs have worked together using their
ii. Compare your answer with the one given at the end of this Unit.
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As reported elsewhere (see Attwood and Baviskar 2002), NGOs sometimes try to fill the gap
between informal savings groups and dysfunctional, state-run ‘co-operative’ credit systems.
In 1976, the Grameen Bank, a new type of NGO, was established in Bangladesh. The bank
advanced only small loans to poor people, primarily women organized into small groups. As
with informal saving groups, group discipline ensures loans repayment. Other NGOs in
Bangladesh have established similar ‘micro-credit’ programmes. The Grameen Bank system
women’s empowerment (Hashemi et al. 1996). Yet, cultivation of group discipline entails
1990 under the auspices of the Co-operative Development Foundation (CDF), a local NGO
based in Hyderabad. WTCs raise funds solely through small, regular contributions from their
members, who earn interest on savings at 1 per cent per month. For loans, they pay 2 per
cent. A village WTC may consist of 200-500 women, divided into groups of 10-50. Group
discipline ensures excellent rates of loan recovery. Loans are used for household expenses,
including house repair, education and health care, as well as investments in agriculture,
In less than a decade, over 33,000 women formed 101 WTCs. As on 31 December 1998, their
combined savings totaled Rs 26 million, with no external grants or loans. The CDF provides
advice and support in established WTCs, but the latter soon become self-sufficient and self-
managing, a source of empowerment for their members. About half the member and leaders
come from landless households; another one-third have less than three acres of land (Biswas
NGOs are the very life-force for the civil society. Civil society and NGOs seem to go
together. One cannot exist without the other. Civil society, when it is not used as a synonym
for society in general, is used to refer to ‘that segment of society that interacts with the state,
influences the state and yet is distinct from the state’ (Chazan 1992:281).
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8.6 Importance of NGOs
The growing prominence of NGOs in the field of development is strongly related to the
declining legitimacy of the state. Increasingly, the state is looked upon with suspicion, if not
espouse the virtues of market enterprise. ‘Good governance’ is believed now to consist of two
functions: facilitating the free play of market forces and enabling decentralized institutions of
the provision of services through local municipalities and panchayats, as well as in the sphere
and corrupt and thus unsuited for performing either welfare or resource-management
functions; whereas, NGOs are seen as ‘civil society’ actors that are more accountable,
responsive and committed to bringing about social change. The state is seen as consisting of
entrenched interests and styles of functioning that make it unwilling and unable to work with
people, a role that NGOs are supposed to be good at. Thus, NGOs have emerged to perform a
bridging function, taking on functions that the state is unsuited for, and are performing them
with lower overheads, greater efficiency and motivation. Increasingly, it is not only funding
institutions but the state itself that accepts the presence of NGOs and, in fact, expects them to
take over certain tasks. This new set of institutional linkages between the state agencies and
NGOs, between state and ‘civil society’, needs to be explored more thoroughly.
The Indian state was initially indifferent, if not hostile, to encouraging NGOs in the sphere of
development, although charity and relief organizations were tolerated to a certain extent. This
climate changed after the mid 1980s. First, in the Seventh Five-Year Plan (1985-90) and later
in the Eighth Five- Year Plan (1992-97), the government openly welcomed and encouraged
participation of NGOs in the development sphere. Recently, the state has sanctioned about
Rs. 1.5-2 billion annually for NGO funding, which is a substantial amount (Patel 1998: 47).
Such a significant presence of NGOs in our civil society is not so common elsewhere. In
October 1992, while speaking on the role of NGOs in India’s rural development at the
American University in Cairo, I was told by senior faculty members during discussion time
that there were hardly any NGOs in the development field in Egypt. In India, they are so
ubiquitous that we take them for granted, just as we take our democratic political set-up for
granted. Amartya Sen (1986: 30-40) has brought out the significance of India being an open
democratic society in his comparison with China where nearly 23 million people died during
a famine in 1958-61 and the world at large did not even hear about it for decades. In the
Indian political system, with a free press, opposition parties and a large number of NGOs,
Many international agencies, such as the World Bank, which were earlier working
implementing some of their projects. In one of its review of such programmes (Gibbs et al.
1999), the Bank has noted several positive aspects of working through NGOs without giving
up some of its reservations. It is noted that the NGOs are far less constrained by bureaucratic
procedures and administrative inefficiencies. What is more important for the Bank is the
relative absence of blatant corruption and leakages in the channeling of funds. This absence
results in a much greater share of benefits reaching the targeted groups than is likely to
However, one should be cautious in generalizing from some of these developments. One
should not jump to the conclusion that the state is retreating. Those who benefit from state
structures are well entrenched. One should not rule out the possibility of the state trying to
co-opt. NGOs to retain its supremacy, rather than retreating from the scene.
NGOs are now an organizational form to which considerable social prestige adheres; they are
for social enterprise for many individuals and social groups. The range of NGO activities
On the one hand, there is the case of Joint Forest Management (JFM), where a caucus of
states to make them more equitable and democratic, especially with respect to women’s rights
On the other hand, there is the case of an NGO in Andhra Pradesh in the animal husbandry
sector that systematically misappropriated funds for several years, while the Delhi office of
their foreign donors turned a blind eye to this for fear of attracting adverse publicity.
State corruption and NGO complicity had a field day in the Council for Advancement of
People’s Action and Rural Technology (CAPART), the government body set up to fund
grassroots NGOs, where fund were disbursed and later evaluations. There are several
conduit for receiving funds with scant work to show for them. Given the cross-over of the
personnel between the state and NGOs, the contrast between their institutional structures and
As with other agencies, the cases of outstanding success in the NGO sector are few and far
elsewhere: for instance, the SEWA in Gujarat was persuaded to start branches in other states.
One has to find out if these efforts succeeded as much as the original. The co-operative dairy
complex represented by Amul at Anand in Gujarat is another famous example. From 1970 to
1995, there was a huge programme called ‘Operation Flood’, funded by the European Union
and World Bank to replicate the Anand pattern all over the country. It did not work (see
Baviskar 1999). Impressed by the success and vitality of sugar co-operatives in Maharashtra,
the central government encouraged similar projects in other states. Most of them failed.
Inspired by the outstanding success of Anna Hazare bringing about all-round development at
Ralegan Siddhi in Maharashtra, the state government persuaded him to accept the
chairmanship of committee to replicate the experiment all over the state. The committee was
to select one village from each taluka and thus, create about 300 Ralegan Siddhis across the
state. He was given the necessary financial and other support. However, the political parties
had their own agendas. Their representatives, such as the MLAs and others, pulled in
different directions. The state bureaucracy was lukewarm in its support since it resented
Hazara’s critical stance towards it. Hazare had to give up the mission when he encountered
the problems of replication under state patronage. He is much more chastened after this
experience. The issue of replicability is linked to the question of scale. How adequate are
NGOs when they attempt to substitute for the state and take on tasks that, in order to make
any kind of dent in terms of social problems, must be conceived on a nation – wide or state-
wide scale?
Whereas many NGOs espouse democratic decentralization, the working of their own
organization is often idiosyncratic, with authority being vested in one charismatic figure who
started the NGO. Structures for the redressal of employee grievances, mandatory in most
formal organizations, are often absent in NGOs where personalized management practices
tend to prevail over more impersonal rule-based procedures. This contradiction has been the
source of conflict in at least two well-known cases, where worker were forced to leave the
organization at the behest of the founders. Whereas state structures are at least formally rule
governed, the same is not true of NGOs where the spirit of voluntarism is sometimes used to
NGOs often seem to indulge in double standards. When criticizing state structures, they plead
for openness, transparency and democratic participation. However, many of them do not
seem to observe these norms in their own functioning. Crucial decisions are often taken at the
top by the senior leaders without any scope for ordinary workers to participate in decision-
making deliberations. The leaders are most reluctant to openly discuss the matters relating to
funding. They talk enthusiastically about the current and future programmes but not about the
sources and quantum of funding. That is why, when Bunker Roy of the Social Work and
Research Center (SWRC), Tilonia announced open scrutiny of the finances of his
organization, it made headlines. He offered to open the accounts in a public meeting and
answer any questions relating to them. No other NGO has come forward with a similar offer.
Similarly, Roy sparked off controversy by suggesting a code of conduct for NGOs. His move
was strongly opposed in several quarters. It was considered to be an attack on the freedom of
ii. Compare your answer with the one given at the end of this Unit.
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Many NGOs find it hard to resolve the problem of succession and routinization. Having been
set up with the initiative of some dynamic and charismatic leader who inspires a following
and support, the organization finds it difficult to continue once the leader is removed from the
scene. It may lose its old élan and spirit. Routinization with impersonal rules and regulations
physical infrastructure, but also the ‘software’ of developing human capabilities. Without
capacity building for managing institution, learning legal-rational procedures for decision-
making and accounting, raising questions and suggesting alternatives, development will not
be socially sustainable. NGOs have been entrusted with the task of developing this
‘software’. This raises problems of its own. By and large, NGOs that receive external funds
are expected to fulfil physical and financial targets, show tangible results (how much money
spent, how many trees planted, how many people trained, etc.), but without regard to the
quality of the output. Often, the expected output is hard to measure since it is difficult to
and orientation tours have been held, it is still not clear at the end of the day exactly how the
cause of development has been served. Yet, the pressing need to meet physical targets (the
requirement of bureaucratic accounting practices) often forces NGOs to take shortcuts so that
While NGOs are often critical of politicians and bureaucracy for misusing and
misappropriating public money earmarked for development, the NGO record is not so
exemplary. Recently it was reported that NGOs have not submitted grants utilization
certificates amounting to several crores of rupees. They have been warned that no further
The economy and efficiency claimed on behalf of NGOs is only relatively superior. When the
late Prime Minister Rajiv Gandhi revealed that less than 15 per cent of the total money spent
by the government on development programmes reached the targeted beneficiaries, there was
a wave of shock and surprise. According to some calculations, this proportion may be 20 per
cent in the case of NGOs, which also spend substantial amounts on their own salaries and
infrastructure. The difference in terms of benefits to the poor may not be so great after all
(Ramachandran 1998:170).
The issue of accountability is also raized by the dependence of NGOs on external sources of
funding. Ever since the issue of foreign funding was raized by the CPI (M)-leader Prakash
setting, the debate crops up again and again. Opinion is sharply divided among NGOs
themselves on these issues. While Bunker Roy is willing to accept a ban on foreign funding,
Before the last general elections, several highly respected NGOs, such as the Indian Social
Institute and Ankur, were asked by the government to show cause why their FCRAs (permits
under Foreign Contributions Regulation Act) should not be cancelled because they had
supported an anti-communal advertising campaign. Any overtly political NGO activity that
seems to threaten the status quo may thus be attacked by the state or by a political party.
Moreover the issue of funding gives the state a convenient leverage over NGOs.
Conflicts among NGO, donor, state and grassroots agendas and under-standings are also
exemplified in the recent controversy over ‘Sahayog’, and NGO in the UP hills that produced
a booklet about AIDS and reproductive health using ‘explicit’ language. This NGO, led by
urban-educated upper-class activists and funded by the MacArthur Foundation, ran afoul of
local sentiments as mobilized by the Bharatiya Janata Party activist. This controversy shows
also that the issue of representation (whose concerns do NGOs voice?) needs to be examined
more carefully. The belief that NGOs represent the view of vulnerable social groups, or are
sympathetic and empathetic towards them, a belief that has been used to justify the greater
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8.7 SUMMING UP
NGOs have been around for quite some time and they are likely to remain with us in the
foreseeable future. Systematic studies are required to say anything with confidence about
them. In the absence of such studies, our understanding of NGOs will remain vague,
development all need to pay serious attention to them. Such a cumulative effort will enable us
not only to understand NGOs but also their contribution to development and social change.
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8.8 GLOSSARY
literature to describe how public institutions conduct public affairs and manage public
resources in order to guarantee the realization of human rights. The concept of "good
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8.9 ANSWERS TO CHECK YOUR PROGRESS EXERCISES
1. Just as there are many definitions of NGOs, there are several classifications too.
Ghanshyam Shah and H.R. Chaturvedi divide NGOs into three main categories:
1. NGOs often seem to indulge in double standards. When criticizing state structures,
they plead for openness, transparency and democratic participation. However, many
of them do not seem to observe these norms in their own functioning. Crucial
decisions are often taken at the top by the senior leaders without any scope for
reluctant to openly discuss the matters relating to funding. They talk enthusiastically
about the current and future programmes but not about the sources and quantum of
funding.
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8.10 REFERENCES
Ralegan Siddhi’, in M.L. Dantwala, Harsh Sethi and Pravin Visaria (eds), Social Change
through Voluntary Action, pp. 74-69, New Delhi: Sage Publications, 1998.
Attwood, D.W. and B.S. Baviskar. , ‘Rural Co-operatives’, in Vandana Desai and Robert
Baviskar, Amita. , In the Belly of the River: Tribal Conflicts over Development in the
Baviskar, B.S. , ‘Dairy Revolution: Inflated Claims and Modest Gains’, Review article in
Baviskar, B.S. and D.W. Attwood., Finding the Middle Path: The Political Economy of Co-
Bhatt, Ela R. , ‘Empowering the Poor through Micro-Finance: The SEWA Bank’, in M.L.
Dantwala, Harsh Sethi and Pravin Visaria (eds), Social Change through Voluntary Action,
Biswas, Arun and Vijay Mahajan, Sustainable Banking with the Poor: A Case Study on
Dantwala, M.L., Harsh Sethi and Pravin Visaria (eds). , Social Change through Voluntary
Elliot, C. , ‘Some Aspect of Relations between the North and South in the NGO Practices’,
World Bank Supported Projects: A Review, Washington, D.C.: The World Bank, 1999.
Hashemi, S.M., S.R. Schuler and A.P.Riley. , ‘Rural Credit Programs and Women’s
Iyengar, Sudarshan. 1998. ‘Voluntary Initiatives for Tribal Development in Gujarat’, The
Jeffery, Roger and Nandini Sundar (eds), A New Moral Economy for India’s Forests?
Korten, D.C. 1990. Getting to the 21st Century: Voluntary Action and Global Agenda. West
Patel, Rohini, ‘Voluntery Organisation in India: Motivations and Roles’, in M.L. Dantwala,
Harsh Sethi and Pravin Visaria (eds), Social Change through Voluntary Action, pp. 40-56,
on ‘Public Management and Poverty Reduction in a Mixed Economy’ at the Lal Bahadur
in M.L. Dantwala, Harsh Sethi and Pravin Visaria (eds), Social Change through
Sen, Amartya, ‘How is India Doing?’, in Dilip K. Basu and Richard Sission (eds), Social and
Publications, 1986.
Shah, Ghanshyam and H.R. Chaturvedi., Gandhian Approach to Rural Development: The
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8.11 QUESTIONS FOR REFLECTIONS AND PRACTICE
3. Does the growing number of NGOs reflect the failure of state machinery?